Economic Joke Failure

June 5, 2007
China's college graduate glut

The joke floating around college Internet chat rooms is that college students nowadays are like cabbages: There's an abundant supply of them and their price never goes up.

The cabbage joke is wearing thin.

April 17, 2008
China's Rising Food Prices Cause Pain

In Beijing's largest wholesale food market, Xinfadi Primary Product Market, even the price of cabbage has risen 50% in the past two months alone.

At least one economic joke appears to be holding up well (and the joke appears to be on us).

February 6, 2007
Bernanke: Education can help with income gap

Bernanke, in prepared remarks delivered to the Omaha Chamber of Commerce, said disparities in education and training is “likely the single greatest source of the long-term increase in inequality.”

For example, a typical robotic arm is SO much smarter than the factory worker of yesteryear. Want really smart though? Look at a recent Chinese college graduate hand assembling plastic toys for Wal-Mart. That's genius I tell you.

More Americans are going to college than ever before. Meanwhile, the inequality gap continues to increase. Perhaps Bernanke's solution is that we all have PhDs.

April 2, 1973
The Ph.D. Glut

In recent years, universities have been graduating far more students with doctorates—a record 32,000 last year—than there are jobs for them.

January 24, 2006
The Ph.D. Glut Revisited

The Ph.D. glut has existed ever since the fall of 1969. The number of entry-level full-time professorial positions has remained stagnant. Few new universities have been constructed. Legislatures have resisted additional funding.

This has led to a reduction of the number of tenure-level positions. Universities and community colleges have been able to staff their entry-level positions with inexpensive instructors.